ADP implementation hits four-year low

The implementation of the Annual Development Programme (ADP) has fallen to a four-year low as the government managed to spend only 57.54% of the allocated budget in the first 11 months of the outgoing fiscal year, in a hurdle to development aspirations.

The revised ADP implementation rate for the corresponding period in the previous three fiscal years was -- 61.73% in FY23, 64.84% in FY22 and 58.36% in FY21 respectively -- after 57.37% in FY20.

A report released by the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry on Wednesday revealed that the government spent Tk1.46 lakh crore of the allocated budget under the ADP from July to May of fiscal year 2023-24.

Due to the lower implementation rate, government agencies are likely to miss the revised target of spending Tk254,391 crore on development projects by the end of June. Originally, the ADP size was Tk2,74,674 crore, designated for the implementation of around 1,400 development projects.

The sluggish pace of ADP implementation has been attributed to the lack of capacity and resources of various ministries, organisations and departments responsible for executing development projects.

Experts have highlight that despite setting ambitious ADP targets annually, the government struggles to fully implement projects within the designated time frame.

They have pointed out that less-than-expected revenue collection has prompted the government to adopt austerity measures, leading to slower ADP execution and subsequent budget cuts.

This situation has raised concerns over the timely completion of vital development projects crucial for the country's socio-economic advancement.

Of the total amount spent, Tk84,113 crore was spent from the government funds during the July-May period of FY24, down by Tk3,764 crore from Tk87,877 crore spent in the corresponding period of the last fiscal year.

On the other hand, the expenditures from foreign funds in the first 11 months of the current fiscal year stood at Tk54,948 crore, which was Tk52,788 crore in the same period of FY23.